On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index fell 0.3% to 7,724.3 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Monday following a mixed finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% lower. In the United States, the Dow Jones was down 0.15%, the S&P 500 edged slightly lower, and the Nasdaq rose by 0.1%.

Oil prices soften

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices softened on Friday. According to Bloomberg, the WTI crude oil price was down 0.2% to US$78.45 a barrel and the Brent crude oil price was down 0.15% to US$82.62 a barrel. This couldn’t stop oil from snapping its three-week losing streak amid optimism over a tighter market.

Buy BlueScope shares

The BlueScope Steel Limited (ASX: BSL) share price could be undervalued according to analysts at Goldman Sachs. This morning, the broker has reiterated its buy rating with an improved price target of $30.10. This implies potential upside of approximately 47% for investors over the next 12 months. Goldman said: “Although the US growth strategy could take around five years to deliver, BSL already looks undervalued vs. US steel peers, and we believe very little of the potential upside from the US growth strategy is being priced into the stock.”

Gold price storms higher

It could be a good start to the week for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday. According to CNBC, the spot gold price was up 1.3% to US$2,348.4 an ounce. This meant that the precious metal recorded its first weekly gain in four thanks to interest rate cut hopes.

Capricorn Metals named as a buy

Bell Potter thinks investors should be buying Capricorn Metals Ltd (ASX: CMM) shares. This morning, the broker has reaffirmed its buy rating on the gold miner’s shares and lifted its price target slightly to $6.53. This suggests that its shares could rise 46% from current levels. The broker said: “CMM is a sector leading gold producer with a strong balance sheet, a management team with an excellent track record of delivery and clear organic growth options to lift group production to 270kozpa. We retain our Buy recommendation.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up last week
• This fund returned 30% per annum for 3 years. Here are the ASX shares it’s buying now.
• Tax-busters: 5 fully-franked ASX dividend shares I’d buy for FY25
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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